tv [untitled] May 9, 2014 11:30am-12:01pm PDT
incredibly efficient but needs upgrades. assistant general manager ritchie and updates from the 6-month discussion are that that we're $10 million worse off than what i told you on the 6-month report so on slide 6 shows about $50 million by the end of june 30th and given the drought that we're having lower power sales revenue that we'd be projected to be just about $40 million and if if we continue to have the cca reserves un spent and appropriated the useable portion would be only about $20 million. bridging the shortfalls looking at every possible solution. deputy hail are making progress on interconnection and looking at
the tunnel costs further so work is being done that's progressing but we do not have specifics to provide at this time we're also discussing increased revenue opposites continue to do that but some of them presented here provide you 3 choices all above zero all solve the drastic shortfall but come with higher rate increases which we're still reviewing. when we did a rate increase on the general fund that was more difficult choices here's more difficult choices of 179 million but never the less gets us back into the black and solves the shortfall. we need these capital cuts as well as other savings in order to be above zero and also satisfy the commission's 15 percent reserve policy so this is another example of how your policies
matter and how that puts us to task so make sure we come to you with a final proposal that is ofs your policies as well as affordability. going forward slide here staying balanced. we're in a dynamic industry here. the agreement doesn't expire so there's several unknowns so we're going to commit to come back to you quarterly revisiting where we are on this path and to meet your objectives and stay balanced and have reserves so we've put together a draft
timeline on how to do that and in the event rate increases on the general fund don't happen we'll have to look at further cuts as well as hiring freezes and other difficult choices but the options we have are not that many unless we have customers paying for their cost of service. and then come back to you with a final proposed financial plan capital plan as well as well as the 2-year supplemental and we'll look to to do that at the may 13th meeting immediately following the mayor's proposed budget for all the enterprised departments. i'm happy to answer any questions. >> so just to get the timing right here you guys are going to sort through all this figure out where the cuts could happen where the revenue could be
generated and come back to the commission before -- >> no this is just a transition plan the mayor is going to propose his budget on may 1st and we will come back to you explaining how that's going to fit into our budget at that time. >> okay so that will be may 13th. >> correct. >> is when we'll have to make some hard decisions. >> yes. >> we put those capital projects into the absolutely required buck ets and important to have but potentially deferrable and that third bucket an expansion of service nice to have but whether or not it's required so the materials you have before you show 3 options that can get us into a positive zone one can actually
satisfy your 15 percent reserve policy but they are going to have to come with a combination of capital cuts as well as additional revenues in order to solve a half a billion dollars shortfall as we discussed in january. >> i would just like to comment that when we adopted the budget, we had some discussion about the clip chart and that it didn't represent a plan it was a description of a problem as opposed to a plan and we asked you to work on that and come back which you are doing and i think there's a tremendous amount of progress here and key to a viable plan is city hall's willingness to increase general fund rates so
i think we are waiting until city hall figures that out is an appropriate thing we need their commitment before we can adopt a plan that really means anything thank you for the progress that you have made and god speed with the city hall folks. >> thank you. >> so this is one of those items if there's no public comment we want to continue to the may 13th meeting as well. >> i don't have any speaker cards is there any public comment on this item? joan? >> i would like to ask to the chair -- do we still have the charter provision that required that while we depreciate our assets that money be set aside
each year in anticipation to repair or replace something. >> it's a good question i'll go ahead and refer to counsel if counsel can answer it on the fly without too much trouble i'd suggest you do so otherwise she will give us a response. >> the charter provision service saying when they were amended by the voters in 2002 they called for these actions to the capital plan and in chapter 16 also requires that funds be set out for the replacement and repair of the facilities on a regular basis so none of that changed the question is how are they going to manage the money and the capital repairs not whether or not. >> well the question i have is how much money is in that set aside reserve to defray the costs, the capital costs here.
we're going to depreciate assets so where's that money that was my question. >> that's an accounting question. >> the question that i heard was about the charter. >> yes. >> and if there's still the existence of the language that required such and such so we've answered that question now the next question is about the money i'm going to go ahead and say i'd like to answer before the 13th if that's possible todd unless you would prefer to answer it now if you don't have a dollar figure. >> so the portion that's actually available in cash is that projected $20 million at the end of june 30th of this fiscal year and the reason it's not more is because we've been investing hundreds of millions
of dollars of cash reserves into the refurbishments but the future needs are not projected to be even greater. >> okay thank you i think we've answered both of joan's questions and please come back on the 13th because i anticipate pretty robust conversation on the 13th right? is there any other public comment on this item. seeing none -- public comment is now closed there is no action here so go on to the next item. madam secretary please. >> next item items 23, 24 and 25 will not be heard and have been removed from the calendar item 26 anticipated litigation as plaintiff item 27 conference with property negotiation
reservoir tract in san francisco , san francisco recreation and park department terms of payment and price and item 28 will not be heard and is removed from the calendar. >> thank you very much donna. >> so i'd like to call for public comment is there any? seeing none public comment is now closed we'll begin moving in. >> actually we need a motion on item 22. >> item 22 whether or not to assert the attorney client privilege. >> i guess i'm not fast enough on my feet. >> that's on me you were there on time. >> just want to say that i hope
known. happy birthday, muni, here is to the next 100 years. the birth of muni had been a long-time coming. over the years the city was disjointed privately owned companies. horses and steam and electric-powered vehicles. creating a hodgepodge of transit options. none of them particularly satisfying to city residents. the city transit system like the city itself would have changes during the san francisco earthquake. the transition that will pursue from this aftermath would change san francisco's transportation system once again. facilitated by city boss, abe
ruth, ushering in the electric city car. the writing was on the wall. the clammer had begun for the experiment including public transit people. owned by the people and for the people. the idea of a consolidated city-owned transit system had begun traction. and in 1909, voters went to the polls and created a bond measure to create the people's railway. would become a reality three years later. on december 28, 1912, mayor sonny rolph introduced the new geary electric streetcar line and the new san francisco
railway. that he said would be the nucleus that would host the city. and san francisco gave further incentive to expand the city's network. a project by way of tunnel leading into chinatown by way of north beach. in december the first streetcar was driven into the tunnel. just two years after its berth, muni had added two lines. and k, l and m lines that span out from westportal. in 1928, the j line opened heading west to the beach. in 1944 san francisco voters finally approved muni take-over of the market street railway.
by then motor bus and trolley bus improvement had given them the ability to conquer san francisco's hills. after the war most of the street-car lines would be replaced with motor or trolley bus service. in 1947, the mayor recommended replacing two lines with motor coaches. and it appeared that san francisco's iconic cable cars had seen their final days. entered mrs. cluskin, the leader to save the cable cars. arguing that the cable cars were a symbol of the city, and she entered a charter placed on the november ballot. it passed overwhelmly. the california street cable railway was purchased by the city in 1952.
there were cut backs on the cable car system and in 1957 only three lines would remain. the three lines that exist today. in 1964 the cable car's future as part of california's transit system was sealed when it was proclaimed a national historic landmark. in february, 1980, muni metro were officially inaugurated. in that same year, muni received its first fleet of buses equipped with wheelchair lifts. in 1982 when the cable car had a shut-down, they added an
alternative attraction to the cars. the festival was a huge hit and would continue for the next four summers in a permanent f-line that would extend all the way to fisherman's wharf, by 2000 the f-line was in place. and in 2007 muni extended the third line to the southeast corner and returning to third street. for the first time in 60 years. in the course of last 100 years, muni's diverse workforce forged by men and women of innovation have reflected the many cultures that flock to the city. muni's ground-breaking antidiscrimination has guaranteed equal opportunity for all. the city's policy mandates the